Saturday, 28 June 2008

Feedback Systems

Adolph Löwe pointed out that Hayek thought of the capitalistic economy as a negative feedback system, while J. M. Keynes and he saw it as a positive one. Institutions were at the core of the problem: For Löwe, property rights were the source of the anarchy of production. On the other hand, Hayek stated the legal systems based on them made the economy stable.